US Semiconductor Index Enters Bear Market…Bloom Energy, Seagate, Teradyne, etc. Post Strong After-Hours Earnings [Wall Street Newsletter]

Summary

The US semiconductor index has entered a bear market, but after-hours earnings from Seagate, Teradyne, and Bloom Energy show strength. Apple rallies beyond $5 trillion market cap, aided by avoiding the AI capex race. The shift from frontier to open‑source AI models favors software stocks. The Fed is expected to hold rates steady, and Enphase Energy could benefit from a Chinese inverter import ban. Market breadth outside semiconductors remains constructive.

• Nasdaq 100 enters correction, but equal‑weight S&P 500 indicates broad market resilience.
• Philadelphia Semiconductor Index is in bear market (down over 20%), with all components below 50‑day MA.
• After‑hours: Seagate, Teradyne, Bloom Energy post strong earnings‑driven gains, hinting AI hardware is starting to be rewarded.
• Apple reaches $5T market cap, viewed as safe haven due to no direct AI capex and iPhone rental program expansion.
• Open‑source AI model trend benefits software stocks over hardware, providing cushion in US market.
• Fed likely to hold rates steady in July; a hike could crush markets, but consumer and employment data argue against it.
• Enphase Energy could benefit from US restrictions on Chinese inverters.
• Corning and KL‑equipment stocks underperform due to weak guidance and DUV concerns.